Pension Mode SMSF
When you start a Transition to Retirement income stream (a pension while you still work) there are certain minimum amounts to withdraw. The maximum amount is 10% of the account balance.
With the GFC these minimum percentages was lowered. This enabled Members to preserve more capital in the SMSF. These minimum percentages are set out below:
|
Age of recipient |
Percentage Factor |
|
Under 65 |
4% |
|
65 – 74 |
5% |
|
75 – 79 |
6% |
|
80 – 84 |
7% |
|
85 – 89 |
9% |
|
90 – 94 |
11% |
|
95 or more |
14% |
Notes:
1. The 4% minimum is the normal percentages that apply for minimum pension draw down
3. Minimum amount calculated on 1 July each year for the transition to retirement regular payment
4. In the first year of the account-based income stream, work out the minimum payment pro rata on effective days in the year
5. Minimum amount to be rounded to nearest $10
6. These minimum amounts are set out in the Superannuation Legislation (click on the link for the legislation)
To start a Pension or Transition to Retirement, Trustees need to minute this decision. Please see a template of a pension commencement minute below
To read more on Pension payments from an SMSF, read the ATO booklet here: